* Activist investment fund Starboard Value LP is expected to disclose on Monday it has taken a 13.3 percent stake in Office Depot Inc and argue the office-products supplier can improve profitability by implementing a host of suggestions laid out by the fund, people familiar with the matter said.

* United States Treasury Department is resisting a push by General Motors Co to sell the government's entire stake in the auto maker - the latest source of tension between two unlikely partners thrust together at the depths of the financial crisis.

* Waypoint Real Estate Group Llc, a major investor in U.S. foreclosed homes, has secured a $65 million loan from Citigroup Inc to help add to its portfolio of properties, according to people familiar with the matter.

* Heineken NV is giving its green bottle a face-lift in the U.S., hoping it will help its flagship Dutch lager and one-time leading beer import stand tall again after years of market-share losses.

* The Winklevoss twins lost the biggest social-network showdown ever when their rival, Mark Zuckerberg, walked away with Facebook Inc. Now they are trying again - with a social network for professional investors.

FT

EADS CHIEF AND BAE'S OLVER TIPPED TO LEAD

EADS CEO Tom Enders and BAE Chairman Dick Olver are a likely possibility to run the board should last week's announced merger go through.

MERGED BAE-EADS NEEDS TOUGHER U.S. 'FIREWALL'

BAE would have to agree to stricter security measures in the U.S. if its EADS deal is to pass muster in Washington, according to a former official and legal experts.

SHAREHOLDERS JOIN FORCES IN SUPPORT OF AUDIT REFORM

A group of UK and European institutional investors have signed a paper supporting major reform of auditors.

BUSINESS FEARS POWER OF TAX AVOIDANCE RULES

Business lobby group the CBI fears that new British rules to curb tax avoidance risk damaging investment.

TOP CHINESE BANK TARGETS EUROPE

China Construction Bank could spend as much as $15 billion on a European acquisition, Chairman Wang Hongzhang said in an interview.

NYT

* The Obama administration plans to file a broad trade case at the World Trade Organization in Geneva on Monday accusing China of unfairly subsidizing its exports of autos and auto parts, a senior administration official said late Sunday.

* The boom in American corporate profits, which has far outpaced the gains in the broader economy since the end of the last recession, is faltering.

* The iPhone 5 that Apple Inc introduced last week with only incremental changes seemed to signal that the industry has entered an era of technological bunny hops.

* Can smartphone apps become hit movies and television shows? Hollywood is watching and wondering. It would help solve a continual problem for studios, which require more fresh source material than is available.

Canada

THE GLOBE AND MAIL

* The Harper government plans to ask the Supreme Court to vet its controversial Senate reform plans in the face of opposition from provincial governments and some of its own caucus members, sources said.

Reports in the business section:

* The RCMP is formally assessing whether to pursue a full-blown investigation of Silvercorp Metals Inc after a Globe and Mail story showed the Vancouver company may be helping pay for a police probe against its detractors in China.

* The federal Competition Bureau is "increasingly concerned" that BCE Inc's $3.4-billion purchase of Astral Media Inc would put too much power in the hands of one broadcaster, with the watchdog saying it could strike down the deal even if broadcast regulators allow it to proceed.

NATIONAL POST

* As MPs return to Parliament on Monday, the federal Conservative government is launching into a more aggressive attack mode to brand NDP Leader Tom Mulcair and his party as risky to the Canadian economy.

* Carey Price is into his second National Hockey League lockout, even if he was some distance from the NHL when it shut down for the entire 2004-05 season. Now, eight years later, the Canadians goaltender is like everyone else wondering how this lockout will play out.

FINANCIAL POST

* The Canadian Auto Workers said Sunday it will focus on getting a deal with Ford Motor Co in its labour negotiations with the Detroit Three after a glimmer of hope in recent days a deal could be reached with the automaker.

* The federal government is ramping up efforts to give Canada's nascent liquefied natural gas (LNG) business a global boost. Natural Resources Minister Joe Oliver is visiting Japan and South Korea this week for discussions with government and business leaders to promote energy trade and investment, focusing on Canada's emerging LNG opportunities.

Fly on the Wall's 7:00 AM Market Snapshot

ANALYST RESEARCH

Upgrades

Crane (CR) upgraded to Buy from Neutral at CitigroupMoody's (MCO) upgraded to Buy from Hold at Benchmark Co.Novartis (NVS) upgraded to Outperform from Neutral at Exane BNP ParibasRandgold Resources (GOLD) upgraded to Neutral from Sell at CitigroupSutor Technology (SUTR) upgraded to Buy from Neutral at Roth CapitalTesla Motors (TSLA) upgraded to Overweight from Underweight at Morgan Stanley

Downgrades

Align Technology (ALGN) downgraded to Hold from Buy at CantorAnnaly Capital (NLY) downgraded to Neutral from Overweight at JPMorganCYS Investments (CYS) downgraded to Market Perform from Outperform at FBR CapitalCapstead Mortgage (CMO) downgraded to Market Perform from Outperform at FBR CapitalG&K Services (GKSR) downgraded to Neutral from Outperform at RW BairdHatteras Financial (HTS) downgraded to Hold from Buy at WunderlichHatteras Financial (HTS) downgraded to Market Perform from Outperform at FBR CapitalInvesco Mortgage (IVR) downgraded to Market Perform from Outperform at FBR CapitalLegg Mason (LM) downgraded to Hold from Buy at JefferiesMarathon Petroleum (MPC) downgraded to Neutral from Buy at CitigroupNational Retail (NNN) downgraded to Market Perform from Outperform at FBR CapitalOpenTable (OPEN) downgraded to Neutral from Overweight at Piper JaffrayPhillips 66 (PSX) downgraded to Neutral from Buy at CitigroupPlantronics (PLT) downgraded to Neutral from Buy at MizuhoSAIC (SAI) downgraded to Market Perform from Outperform at Raymond JamesValero Energy (VLO) downgraded to Neutral from Buy at Citigroup

Initiations

Bloomin' Brands (BLMN) initiated with an Outperform at Wells FargoBloomin' Brands (BLMN) initiated with a Buy at GoldmanBloomin' Brands (BLMN) initiated with a Buy at JefferiesBloomin' Brands (BLMN) initiated with an Outperform at Raymond JamesBloomin' Brands (BLMN) initiated with an Overweight at JPMorganNetflix (NFLX) initiated with an Underperform at MacquarieOraSure (OSUR) initiated with a Buy at CitigroupServiceNow (NOW) initiated with a Neutral at Mizuho

The Treasury Department is resisting a move by GM (GM) to sell the government's entire stake in the auto maker. GM executives have grown increasingly frustrated with that ownership, and the stigma of being known as "Government Motors," the Wall Street Journal reportsPrivate-equity firms wanting to offload assets, are turning mountains of sand, gas stations and coal mines into a special type of security that offers investors annual yields as high as 19% for years to come. These securities come in the form of an investment known for a predictable income stream and relative safety: master limited partnerships. But some investors and analysts worry that these new MLPs carry much more risk than their predecessors, the Wall Street Journal reportsGE (GE) hired Morgan Stanley (MS) to review its 33% stake in Thailand's Bank of Ayudhya Pcl, which could potentially lead to a sale of its about $2.2B holding, sources say, Reuters reportsUBS (UBS) expects Swiss banks to see European clients withdraw "hundreds of billions of francs" as a result of moves to stop foreigners using secret accounts to evade taxes, Reuters reportsBAE Systems’s (BAESY) planned merger with European Aeronautic, Defence & Space Co. (EADSY) may attract other suitors for the British firm and set off industry consolidation, said Moody’s Investors Service, Bloomberg reportsAs India opens foreign investment in retail, Wal-Mart (WMT) may be the first to tap the $505B market as Carrfour (CRERY) and Tesco (TSCDY) battle declining profits and consumer spending, Bloomberg reports

BARRON’S

Apple (AAPL) shares likely to rally further on iPhone 5Iron Mountain (IRM) shares may be fully valuedCompass Minerals (CMP) shares could trade up to $90Kratos Defense (KTOS) shares could more than doubleWestern Digital's (WDC) increased shareholder commitment is heartening

(Reuters) - Beijing is struggling to deal with an increasingly violent flashpoint of social unrest in its healthcare system, as its latest bid to cut costs is failing to ease tensions among millions of people who cannot afford basic treatment.

Too bad China failed to give better health care to its people with the $800 Billion 'stimulus." Instead, it greased the palms of RE developers, local gubbermint officials, businessmen, etc.